South Africa-based solar energy and digital devices asset financier Yellow has raised an undisclosed amount of Series C funding to grow its customer base.
Founded in 2018 by Mike Heyink and Maya Stewart, Yellow focuses on the last-mile distribution of affordable “pay as you go” (PAYG) solar home systems to low-income rural households. It has expanded across the continent and broadened its product offering to include digital devices like smartphones. The company employs more than 200 staff and has provided over one million customers with access to financing for smartphones and off-grid solar solutions. Yellow uses AI-enabled credit scoring to assess customers and provide financing for essential products.
Yellow’s Series C funding round, the amount of which is not disclosed, was led by Convergence Partners, which also led the startup’s US$14 million Series B round in 2023. The round supports the company’s expansion across its key markets, including Malawi, Zambia, Uganda, Rwanda, Madagascar, the Democratic Republic of Congo (DRC), and Nigeria.
“Yellow is delighted to deepen our partnership with Convergence – the capital allows us to broaden our impact on the continent,” said Mike Heynik, CEO of Yellow. “Having recently served customer number one million, their investment puts us on track to achieve our target of serving 10m customers with access to electricity and internet by 2030.”
Brandon Doyle, CEO of Convergence Partners, said the firm remained confident in Yellow’s business and management team.
“Yellow has demonstrated significant progress since our initial investment. Our decision to lead this funding round reflects our continued belief in the business, its management team and the opportunity ahead,” Doyle said.